Megatrends

The most influential Megatrends set to shape the world through 2030, identified by Euromonitor International, help businesses better anticipate market developments and lead change for their industries.

Cigars, Cigarillos and Smoking Tobacco in the US

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Executive Summary

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PROSPECTS

FDA reconsiders rollout of new cigar regulations

In March 2018, the FDA started soliciting opinion and feedback on its plans to regulate cigars in the US by issuing an Advanced Notice of Proposed Rulemaking (ANPRM) for premium cigars. The ANPRM allows the FDA to collect new data and information via its website, particularly information pertaining to the definition, consumption and health impact of premium cigars.

Cigars and cigarillos continue to grow

As the tax burden imposed on cigarettes continues to increase, some consumers are starting to consider switching to cigars and cigarillos. When it comes to cigarillos, their lower cost is certainly a factor which may attract cigarette smokers.

Smoking tobacco remains on a downward trajectory

While pipe tobacco posted positive volume growth over the review period as a whole, its decline which began in 2015 continued in 2017, while fine cut tobacco also recorded a contraction. As economic prospects improve in the US, the appeal of fine cut tobacco, a relatively affordable option among tobacco products, has weakened, with many consumers reverting back to regular cigarettes.

COMPETITIVE LANDSCAPE

Industry leaders face public health concerns

Swisher International remained the leading player in cigars and cigarillos in 2017, continuing to grow its sales despite public health concerns about the appeal of these products among younger consumers. John Middleton also recorded solid gains thanks to the robust performance of its Black and Mild cigars.

Altria restructures its operations to make vapour products a priority

Altria Group has reorganised its US operations in order to better position itself to introduce innovative reduced-risk tobacco products fitting with current and future trends, as well as sustain its existing cigarette and cigar tobacco products. The group’s US business will now be split into two divisions, with one focusing on reduced-risk tobacco products and the other managing Philip Morris’ cigarettes as well as the Middleton and Nat Sherman cigar brands.

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Overview

Discover the latest market trends and uncover sources of future market growth for the Cigars, Cigarillos and Smoking Tobacco industry in USA with research from Euromonitor's team of in-country analysts.